All About MTSL

What is in each issue?

• Pulse of the Market-- Economic news and market trend analysis.
• Investment Scan -- What you need to know about new drug development, the companies involved, and the diseases.
• Biotech Sector Analysis -- Analysis of our favored biotechnology stocks.
• Company Updates -- Our analysis of the latest news from our recommended companies.
• Buys For New Money -- The best opportunities in biotech stocks right now.
  

 Each issue begins with a brief 'Pulse of the Market,' analyzing the state of the economy and the overall trend of the stock market. We use these observations to establish an investment framework against which to make our growth stock recommendations. We are proud of our record in predicting both the market and the economy, though we have discovered that many biotech stocks can and do move independently of the market. In following the stock market, we tend to be contrarians, recognizing that the market turns down when most investors are optimistic and turns up when pessimism is at its greatest.


In the 'Investment Scan' section, we take a detailed look at drug development in a specific area. We usually discuss either an industry segment; wound healing or inflammation, for example; or important industry-wide issues like patents or the FDA. Typically, we will comment on individual companies in the sector under discussion, and occasionally make a purchase recommendation on one or more of these companies. 'Industry Scan' provides useful background information and helps subscribers evaluate breaking news while building a knowledge base.

The 'Biotech Sector Analysis' section provides news and analysis of our favored stocks. In addition, it includes notice of upcoming conferences or other events that are likely to change the price of our recommended stocks.


Finally, each issue provides subscribers with our 'Buys for New Money.' In this section, we indicate which of our recommended companies would be our first choices for purchase, as of the date of publication, without regard for any positions that we may already have established. These are broken down by tiers with the first tier consisting of the recommended companies with the largest market capitalizations, followed by the second tier and the third tier companies with lower market caps. In general, risk increases as market cap decreases.

How many stocks do you recommmend and when do you make new recommendations?

MTSL does not set an arbitrary limit on the number of companies we recommend. At any given time we recommend 20 to 25 companies. New Purchase Recommendations are made when we find stocks with an unusually attractive risk/reward ratio. We typically look for stocks with the potential to at least double over the next 18 to 24 months. A target price is established at the time of the recommendation and will be changed if and when conditions dictate. Given the inherent high risk of the stocks we cover, this large potential is necessary to justify the risk. All recommendations have a buy limit, as we do not believe in chasing stocks on short-term strength.

How can MTSL's performance be tracked?

Included in MTSL are two hypothetical portfolios, the Model Portfolio and the Aggresive Portfolio. These portfolios exemplify our investment decision making, and are updated in every issue. Historical performance is listed in the MTSL vs. the Dow box on the back page. The performance of the portfolios is the yardstick by which MTSL is judged, although there are as many ways to use the investment information in MTSL's pages as there are individual subscribers. The Aggresive Portfolio uses leverage, and a shorter-term, more aggressive stance. Leverage increases its upside potential, but also increases risk.

How can I use MTSL's advice?

There is no set way to take advantage of MTSL. Some subscribers may simply want to keep abreast of this stimulating field and make an occasional investment. At the other end of the spectrum, some brokers use MTSL as a source of the advice they provide to their clients. Other subscribers use MTSL's Portfolios as guides to build their own individual biotech portfolios. As we are unaware of an individual's circumstances and risk tolerance, we do not provide individualized investment advice.